Shareholders OK Boeing-Embraer JV; court, anti-trust approvals next

Discussion
What’s in it for each

“NewCo will be Boeing’s primary center of excellence for aircraft up to 150 seats governing end-to-end design, manufacturing, and support,” Slattery wrote in his column. “Boeing, in parallel, will be able to increase its global presence and production capacity, offer an expanded portfolio of solutions, access outstanding engineering capability and product development models, and achieve efficiencies from broader scale and vertical capabilities.

“The shift away from the 100 to 150-seat segment maximizes the strengths of the product portfolio offered by Boeing and the NewCo. There’s now a comprehensive, highly-complementary commercial aircraft portfolio that ranges from 70 to 230 seats” in the single aisle sector, Slattery writes.

In a nutshell, this described the benefits.

Continuing with the EJet

The EJet E2 entered service only last year and just a few E190-E2s are in service. The E195-E2 enters services this year and the E175-E2 not until 2021.

A wave of E1 retirements begins in the early 2020 decade, meaning the replacement requirement will continue throughout the next decade.

Embraer’s engineers are large through with the E2 program. There will be tweaks and PIPs, but developing a new airplane for the 100-150 category that will be the responsibility of NewCo—which will be based in Brazil—will be a 2020s decade project. Embraer’s engineers will be the lead on this.

KC-390 experience

Some may believe that the 100-150 seat sector will be a big leap for Embraer. The EJet, although Embraer doesn’t like the comparison, is largely viewed as a regional airliner. A mainline jet is another animal, some argue.

Yes and no.

The E195 E2 is not a small airplane. Dimensionally, it’s every bit as big as the Boeing 737-700 and Airbus A319—only the fuselage width is smaller.

In two-class configuration, the E195-E2 seats as many people as the two-class 737-700. In shoe-horn single-class, the E195-E2 seats almost as many passengers as the 737-700.

The KC-390, a multi-role tanker transport, dimensionally is about the same size as the 737-700, the Airbus A319 and has a wing span slightly smaller than the E195-E2. But the KC-390 weighs more and has a heavier Maximum Take Off Weight than any of these airplanes. It is bigger than the original 737-100.

The International Aero Engines V2500 powerplants on the KC-390 are larger than any Embraer airplane and more powerful than on the referenced aircraft.

The second JV proposed by Boeing and Embraer will have a split 49%-51% shareholding control respectively. The KC-390 is a focus of this JV, with Boeing likely to assume principal responsibility for global marketing and product support.

Supplanting the 737-7

Boeing’s 737-7 MAX, despite a redesign adding 12 passengers and making it a simple shrink of the 737-8, remains stalled in sales of about 70 aircraft. Its future as a commercial airliner is iffy at best, with the BBJ and military VIP transports its best future.

With NewCo to be charged with developing aircraft in the 100-150 seat sector, look for the E2 to remain in production throughout the 2020 decade. NewCo will design an aircraft that will supplant the 737-7 and for the 2030 decade and beyond.

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